Shield AI's recent Series G funding round of $1.5 billion secures the company's valuation at $12.7 billion. It also raised $500 million with a preferred equity investment. The round was led by Advent International and co-led by a group of investors from JPMorgan Chase. Other returning investors like Snowpoint Ventures, InnovationX, Riot Ventures, Disruptive and Apandion participated as well.
Blackstone-managed funds provided $500 million of preferred equity and a further $250 million in the form of an unfunded commitment. Advent chairman David Mussafer will take a seat on the company’s board and Todd Combs will be a board observer.
Some of the funding will be used to purchase Aechelon Technology, a company specializing in sophisticated flight simulation and training equipment. Its systems are used by the U.S. military and its partners to train pilots and test aircraft before live missions. The company is also involved in significant defense initiatives such as the Pentagon’s Joint Simulation Environment.
The deal it said will enhance the Hivemind software, especially in simulation-based training. The funding will also go towards new aircraft programs and the development of X-BAT, which is currently in talks for further development with the local enviroment authority.
Following the closing of the deal, Aechelon will operate within Shield AI and continue servicing its current customers. Ignacio Sanz-Pastor, its CEO, will report directly to Shield AI CEO Gary Steele.
Hivemind, Shield AI’s software product, is already piloting 26 different types of vehicles: fighter jets, drones, helicopters and ground systems. The U.S. Air Force recently selected it for its Collaborative Combat Aircraft program, and is being tested on aircraft developed by Anduril Industries.
The company also has a defense-oriented artificial intelligence system that leverages simulation and the data of autonomous flight systems in the real world to make them better over time.
Regulatory approvals will precede closing the Aechelon deal.
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